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Xiaomi is expected to take advantage of Samsung’s excess capacity and use OLED displays for its upcoming Mi Mix 2s (codename “Polaris”), a 6” smartphone with a high SBR and a very small notch cut in the upper right corner. There is also some speculation that the company might also use an OLED display for its next “Mi” model, the Mi 7, expected to be announced in April/May. The resurgence of Xiaomi as an OLED customer is viewed as a positive for Samsung as the two companies signed a deal at the end of 2017 (unconfirmed) with SDC shipping over 3m units by the end of January. As Xiaomi shipped over 87m units among 13 models last year, and the Mi Mix M2, the precursor to the M2s, was a moderately popular model, the initial orders for the Mi Mix2s could be 4 to 5m units. While this new demand will not make up for Apple’s shortfall it does help and reverses Xiaomi’s original decision to back away from OLED last year However, Samsung Display remains challenged to replace Apple’s ‘assigned’ capacity, which was likely a higher priced flexible item than what Xiaomi is looking for, but Samsung is likely to offer a volume discount to attract Xiaomi and fill some capacity at the same time.

SDC is not quite in a position to ask Xiaomi for guaranteed minimum volumes, but Xiaomi is likely to negotiate for guaranteed capacity, which would ally any fears that they would be pushed to the side when Apple does place orders for the next iPhone X. With some success from Xiaomi, Samsung is likely to go after the other big C